Pioneer Cement: Foreign firm acquires management stake

Vision Holding exercises call option to buy 26% shares. Final purchase price per share agreed at Rs6.2.

Vision Holding Middle East Limited (VHMEL), a company incorporated in the British Virgin Islands, has announced the acquisition of 57.77 million shares, or 25.93 per cent, of Pioneer Cement Limited.

VHMEL had already purchased 49.08 million shares of Rs10 each, or 22.03 per cent of the issued capital of Pioneer Cement, at Rs22 per share last June.

Certain shareholders of Pioneer Cement had granted VHMEL a call option for 57.77 million ordinary shares of Rs10 each. This option had been granted for a period of 18 months commencing June 18, 2009.

The call option allowed VHMEL to purchase the shares at any time during the 18-month period at a price agreed upon following due diligence. VHMEL decided to exercise the option and an amount of Rs6.2 per share was agreed upon as the final purchase price.

Published in The Express Tribune, December 15^th, 2010.